Final trading statistics for the 2002/3 renewal period prove it to be a breakthrough year for electronic trading in the reinsurance industry. A record number of companies placed at least part of their portfolio on-line and trading volumes showed dramatic year-on-year increases.
Many renewals were completed late this year with a number of contracts slipping past the January 1 deadline and into the New Year. In the fourth quarter of 2002 and through to the first weeks of January 2003 the inreon trading platform, saw in excess of 1500 submissions to reinsurers, representing a premium value in excess of $320m. This total was a 300% plus increase on trading activity experienced 12 months previously.
In addition the proportion of trades successfully bound on-line also jumped significantly. During the fourth quarter inreon members bound three times as many risks as in all previous trading activity from the platform�s inception in December 2000 to the end of the third quarter 2002. Previously the percentage of risks bound had been between 5% and 10%, but during renewals this statistic climbed to 20% to 25%. By December 31, 2002 a total of 118 companies had signed membership agreements in order to trade via inreon with 83 new members added during the course of the year.
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